NEW YORK, July 19 (WorldACD) - An IATA official said Friday the decision that would effectively lift rates on low density cargo, scheduled to start October 1, probably will not be put into effect until late this year or early next.

"In reality, it's almost certain that we'll have an extended date of effectiveness," Phil Sims, Senior Director, Cargo, International Air Transport Association (IATA) Distribution & Financial Services, told WorldACD.

Under the plan, rates on cargo like apparel, shoes and toys would jump 20 percent. This would involve a change in the conversion rate for volumetric freight from 6,000 to 5,000 cubic centimeters per kilo.

The plan and the proposed timing of its implementation had drawn strong opposition from forwarders.

In a telephone interview from Montreal, Sims said, "we have a number of reviews to get and many of the reviews may take longer."

Asia, where economies are struggling to recover and where businesses are least able to deal with increased costs, would be particularly hard hit since the products involved are among the chief goods produced there.

Similar air cargo goods are shipped by countries in Latin America, which also have been coping with economic problems this year. Forwarders also complained they didn't have enough time to implement the change.

Moreover, shippers would have to change their packaging and procedures, also with very little lead time.

Sims confirmed that governments must approve this proposal from IATA's tariff coordinating council. For instance, the proposal goes to the US Department of Transportation, which can approve, reject or modify it, he said.

The council would wait until it had a significant number of approvals before implementing the proposal, Sims said. He couldn't specify how many were needed, but said more than 25 government reviews are being sought.

Of course, the council also needs the major countries to approve the plan. "If we didn't have the U.S., we couldn't start, but if we didn't have Mauritius, we could," Sims said.

Specifically, the IATA tariff council will see when and how many approvals come in. Then it will set an implementation date.

Sims said the council, which meets every two years, would not reconvene to discuss this issue.

By Alan Gersten